Which of the Following Is NOT a Cost of Using

question 100

Multiple Choice

Which of the following is NOT a cost of using fiscal or monetary policy to address a jobless recovery?

• A) Expansionary monetary policy may lead to inflation in the long run.
• B) Government spending might crowd out spending by consumers and firms.
• C) Lower interest rates encourage consumers to increase spending.
• D) Cutting taxes and increasing government spending increase the national debt.

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Definitions:

Arithmetic Operations

Fundamental arithmetic processes comprising of adding, subtracting, multiplying, and dividing.

Arithmetic Operations

Basic mathematical operations such as addition, subtraction, multiplication, and division.

Exponential Growth

A pattern of data that shows greater increases over time, following a mathematical model where growth rate is proportional to the current value.

Compound Interest

Interest computation method where both the beginning principal and the accumulated interest from past terms are considered.